Darkness by Design

In this masterful book, Walter Mattli delivers a tour de force that is deeply researched, crisply written, and timely. Darkness by Design is a must-read for regulators, policymakers, and anyone interested in how securities markets work.--Yesha Yadav, Vanderbilt Law School Mattli's book is both lucid and short, two priceless qualities in discussing market structure.---David Morris, Financial News Mr Mattli's book is a delightful chronicle of the changes in the way trading-related information has flowed---Namit Gupta, Business Standard There are few books on the structure and governance of equity markets, and even fewer that can be enjoyed by new and experienced readers . . . Mattli's sets a high standard.---David Murphy, Open Letters Review Walter Mattli takes us into a world of lit markets and dark pools, of stuffing and spoofing, and of trading speeds that make the blink of an eye seem interminable. He reveals how modern asset markets are actually governed--and how power is accumulated, used, and abused. Readers of this book will find it difficult to think about financial markets the same way ever again.--Jeffry Frieden, Harvard University Walter Mattli's excellent book looks at the technological revolution that led to the fragmentation of today's security exchanges and trading floors. Innovations such as algorithmic trading and dark pools present significant challenges to market participants on issues ranging from efficiency and transparency to fairness and investor protection. Mattli's brilliant analysis is an eye-opener for everyone interested in the future of these markets.--Effi Benmelech, Northwestern University What Mattli shows in his study of the New York Stock Exchange is that, prior to 1970, it is quite possible to believe that capitalists did behave with a degree of honour and regard for the public good in the way they conducted business.---Don Flynn, Chartist Provocative and engaging. --Stephen H. Haber, coauthor of Fragile by Design: The Political Origins of Banking Crises and Scarce Credit This important book traces how broker-dealers began to grow, converted to public companies to increase capital, gained financial and political influence, formed new coalitions that demanded changes in governance to benefit themselves, and produced the conflict-ridden, unequal system we have today. The story Mattli tells reads almost like a Shakespearean plot. --Kenneth W. Abbott, Arizona State University